888 to seek larger marker share in fewer markets

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The FTSE 250-listed gambling company 888 Holdings has announced an updated strategy at its Capital Markets Day in London. The company has outlined plans to concentrate on a “smaller number of key markets” in 2025 to cut its leverage.

It forecasts revenue of more than £2bn in 2025, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) margin of more than 23 per cent and adjusted net debt/EBITDA of less than 3.5x. That’s based on a focus on a “refined” number of key markets in which it aims to gain greater market share.

The company will also seek to accelerate cost synergies from its acquisition of William Hill’s European operations. It foresees pre-tax cost synergies of approximately £150m, with about £87m in operating cost synergies expected to be achieved in 2023.

888 CEO Itai Pazner said:

“As a newly combined business we have significant scope for improving our operating model and delivering efficiencies. Over the next two years, we plan to fully integrate our business – creating a bigger, stronger and better organisation with higher profit margins. We are focused on building a customer-led business with a portfolio of world-class brands that provide complementary offerings, supporting our ambitions to drive market share growth in some of the most attractive betting and gaming markets in the world. This will be enabled by a scalable, unified proprietary technology stack that will underpin our product and content leadership focus.”

Pazner also added:

“Our long-term potential remains exciting. Building our unified tech platform will present us with real future growth opportunities as we take advantage of our world-class brands, product and content leadership, and customer excellence to set our business for the next decade of growth.”

888 reported a drop in Q3 revenue, down by 7 per cent year-on-year to £449m. The drop in revenue is mainly due to its exit from the Netherlands upon the launch of the regulated igaming market in October and due to player safety measures in Britain.

In September, 888 announced the launch of its African joint venture, 888AFRICA, which is starting with licences in four East African countries: Kenya, Tanzania, Mozambique and Zambia. It plans to expand further in the region.

Source: focusgn.com